The British Pound started a decent increase from the 1.2320 support zone against the US Dollar. The GBP/USD pair broke the 1.2400 resistance area to move into a positive zone.
The pair even spiked above the 1.2500 level and settled well above the 50 hourly simple moving average. It traded as high as 1.2518 and corrected lower to 1.2420 on FXOpen.
The pair is rising again and it recently tested the 50% Fib retracement level of the downward move from the 1.2518 high to 1.2420 low. On the upside, a clear break above the 1.2480 level could lead the pair towards the 1.2520 and 1.2540 levels in the near term.
On the downside, there is a key bullish trend line forming with support at 1.2440 on the hourly chart. If GBP/USD slides below 1.2440, it could test the key 1.2400 support zone.
